DECENT JOB CREATION CONTINUES TO BE INDECENT SHOWS EPFO DATA, AN INCREASE OF ONLY 88,244 REGISTERED IN NOVEMBER OVER OCTOBER 2024

Decent job creation in India continues to be indecent, if the latest Employment Provident Fund Organisation (EPFO) provisional data released on January 20, 2025 is of any indication. The trend of increase in new EPF subscribers remains at very low. A total of 874420 new subscribers joined in November 2024, which was an increase of only 88,244 over the October 2024 figure of 786196.

It should be noted that number of new subscribers joining the EPF has been witnessing sharp fluctuation in the current financial year 2024-25, which shows the volatility in the Indian labour market, as far as decent job creation is concerned.

The total number of new EPF subscribers in April was 979460, which rose to 1059379 in May, only to rise further to 1086342 in June, and to 1132367 in July. Then there was a sharp fall in August and it came down to 997506. It registered a minor increase in September when new EPF subscribers were 1001308 only to
fall sharply to the lowest level to 786196 in October.

Number of members exited from EPF shows the really pathetic situation prevailing in the decent job market. Exited members were 849849 in November, 1322899 in October, 1430659 in September, 1446418 in August, 1542493 in July, 1579391 in June, 1613008 in May, and 1637523 in April.

Exited subscribers were generally much more than the new EPF subscribers joined. Volatility in the decent job market having social security like EPF is obvious, which meant that labour force is not sure about retaining their jobs. Complexity of the situation has another layer also in which after a troubled time of joblessness, many of the exited employees joined and rejoined again as EPF subscribers.

However, Union government has patted its back on the increase of numbers in the net payroll data of EPFO, on account of Number of exited members who joined and resubscribed EPF. In November 2024, a total of 1463089 subscriber in the net payroll data, which included 1438518 exited and rejoined and resubscribed
members.

The Union Government’s boasting of a net addition of 14.63 lakhs members in November has little meaning, since it does not include the level of distress suffered by the workforce during their exit and
rejoining the EPF. Moreover, on an annual basis, it was only a 4.88 per cent rise, which the ministry said it
achieved due to uptick in employment opportunities and increase in awareness about employment benefits due to EPFO’s “outreach initiatives”.

The claim should be seen in the backdrop that EPFO is still not ready with the system to implement the Employment Linked Incentive schemes which were announced in the Union Budget 2024-25, and the government has failed in launching the same. Under the three ELI schemes incentives were to be given to employers and employees for new subscribers. Therefore, almost the entire year 2024-25 has gone wasted on this account.

Another area of concern is the data for Establishments remitting first ECR in the month, which shows a
declining trend, showing general delay in crediting of EPF contributions to employees’ accounts. The number of establishments remitting first ECR in the month were down to 2336 in November, from 5784 in May 2024.

Nevertheless, on the very low base of new EPF subscribers in October, the increase in November was about 16.58 per cent. Compared to November 2023, it was an increase of about 18.80 per cent.

New subscribers joining EPF was dominated by the workers of age group 18-15 years, many of them first time job seekers, in November which stood at 54.97 per cent. In absolute numbers they were over 4.81 lakh. It was an increase of 9.65 per cent from October. On year-on-year basis the increase was 13.99 per cent. As for the net payroll addition of this age group is concerned, it was 5.86 lakh in November, an increase of 7.96 per cent from October.

There was an 11.47 per cent increase in exited EPFO members who rejoined in November compared the October. On year-on-year basis the increase was 34.75 per cent. It was a good trend on part of the employees who did not prefer final settlement of their money deposited with EPFP, but went for transfer of their account with new employers. It shows their hope of finding a decent job, but the percentage is very poor.

As for female workforce is concerned, there were 2.4 lakh new EPF women subscribers in November, which was an increase of 14.94 per cent from October. On year-on-year basis it was 23.62 per cent. The net addition of women workers in EPFO payroll was 3.13 lakh in November which was an increase of 12.16 per cent compared to October, and 11.75 per cent compared to November 2023.

Engineering, textiles, garments, expert services including manpower suppliers and security services were the chief industries and services in which the rise in EPF subscriptions both new and net were witnessed. Expert services contributed 38.98 per cent in total net EPF subscription.

Maharashtra, Karnataka, Tamil Nadu, Haryana and Gujarat remained the top 5 states among the States/UTs in the country which contributed 59.42 per cent net addition of EPF subscribers, in which Maharashtra’s contribution was 20.86 per cent. The rest of the country is showing little progress in decent job creation.

The latest EPFO data shows that the Union Budget 2025-26 will have to focus on decent job creation after a loss of entire one year 2024-25, despite announcement of ELI Schemes in the budget, which proved nonstarter.